The stock of Activision Blizzard, Inc. (NASDAQ:ATVI) is now priced at $83.13 and the shares are 1.14 points up or 1.39% higher compared to its previous closing price of $81.99. The stock had 4.433 million contracts set over the past session. ATVI shares’ daily volume is compared to its average trading volume at 7.299 million shares. However, it has a float of 763 million and although its performance was 5.07% over the week, it’s one to watch. Analysts have given the ATVI stock a yearly average price target of $94.65 per share. It means the stock’s upside potential is 13.86% with the ATVI share price recently placing at $81.59 to $83.2799. However, some brokerage firms have priced the stock below the average, including one that has called $75.
The shorts are running away from the Activision Blizzard, Inc. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the ATVI shares have declined. Short interest in the stock represents just 1.3% of its float, but the volume has dropped by -718844. The volume of shorted shares dropped to 9.933 million from 10.651 million shares over the last two weeks. The average intraday trading volume has been 4.15 million shares, which means that days to cover moved to roughly 2.393623.
In the last trading session, Activision Blizzard, Inc. (NASDAQ:ATVI) raised by $4.01 over the week and gained $2.37 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $87.73. The stock recorded its established 52-week high on 08/06/20.
Since 08/23/19, the stock has traded to a low of $47.16 at 76.27%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.7. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Activision Blizzard, Inc.’s two-week RSI is 54.98. This suggests that the stock is neutral at the moment and that ATVI shares’ price movement remains stable. The stochastic readings are equally revealing at 34.79% meaning the ATVI share price is currently in neutral territory.
The technical chart shows that the ATVI stock will likely settle at between $83.74 and $84.36 per share. However, if the stock dips below $82.05, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $80.98.
Currently, the stock is trading in the red of MACD, with a reading of -0.29. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Needham though raised target price of ATVI stock from $75 to $90 but maintained Buy recommendation in their July 02 review. The Benchmark Company analysts see the stock as a Buy, but they also raised the share’s target price from $77 to $85 in a flash note released to investors on June 29. Wells Fargo analysts see the stock as Overweight when the analysts initiated the share price coverage on April 07, placing it at $75.
The average rating for the ATVI equity is 1.88 and is currently gathering a bullish momentum. Of 32 analysts tracking Activision Blizzard, Inc. polled by Reuters, 3 rated ATVI as a hold. The remaining 29 analysts were split evenly. However, the split wasn’t equal as a majority (28) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the ATVI stock price is 25.02X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 35.5 below the group’s average of 77.8. Activision Blizzard, Inc. has its P/E ratio at 4.7, which means that the stock is currently trading at a discount relative to the 8.4 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Activision Blizzard, Inc. (NASDAQ:ATVI) will decrease by about -12.39%, which will see them reach $1690 million. The company’s full-year revenues are, however, expected to increase by about 23%, up from $6390 million to $7860 million. ATVI’s expected adjusted earnings should surge almost 100% to end up at $0.64 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 44.44% to record $3.25/share.